NXTG vs. CHAT

Last updated Jun 4, 2026

NXTG (First Trust IndXX NextG ETF) and CHAT (Roundhill Generative AI & Technology ETF) are both Technology Equities funds. NXTG is passively managed, while CHAT is actively managed. Over the past 3 years, NXTG returned 35.56%/yr vs 55.51%/yr for CHAT. A 0.79 correlation means they provide meaningful diversification when combined. NXTG charges 0.70%/yr vs 0.75%/yr for CHAT.

Performance

NXTG vs. CHAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust IndXX NextG ETF (NXTG) and Roundhill Generative AI & Technology ETF (CHAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NXTG achieves a 54.54% return, which is significantly lower than CHAT's 74.30% return.

NXTG

• 1D: -0.82%
• 1M: 22.84%
• YTD: 54.54%
• 6M: 55.39%
• 1Y: 82.82%
• 3Y*: 35.56%
• 5Y*: 19.17%
• 10Y*: 17.94%

CHAT

• 1D: -0.66%
• 1M: 27.78%
• YTD: 74.30%
• 6M: 73.13%
• 1Y: 144.01%
• 3Y*: 55.51%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

NXTG vs. CHAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NXTG First Trust IndXX NextG ETF	54.54%	28.46%	12.85%	15.09%
CHAT Roundhill Generative AI & Technology ETF	74.30%	49.85%	30.98%	19.23%

Correlation

The correlation between NXTG and CHAT is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (All Time) Calculated using the full available price history since May 19, 2023	0.79

The correlation between NXTG and CHAT has been stable across timeframes, ranging from 0.79 to 0.80 - a consistent structural relationship.

NXTG vs. CHAT - Sectors Allocation Comparison

Sectors	NXTG	CHAT
Technology	66.1%	76.5%
Communication Services	21.7%	16.6%
Real Estate	7.5%	-
Industrials	4.3%	0.8%
Consumer Cyclical	0.4%	5.6%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.0%
Healthcare	-	-
Utilities	-	-

Return for Risk

NXTG vs. CHAT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NXTG

NXTG Risk / Return Rank: 96
NXTG Sharpe Ratio Rank: 97
NXTG Sortino Ratio Rank: 96
NXTG Omega Ratio Rank: 96
NXTG Calmar Ratio Rank: 95
NXTG Martin Ratio Rank: 95

CHAT

CHAT Risk / Return Rank: 94
CHAT Sharpe Ratio Rank: 97
CHAT Sortino Ratio Rank: 94
CHAT Omega Ratio Rank: 93
CHAT Calmar Ratio Rank: 96
CHAT Martin Ratio Rank: 94

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NXTG vs. CHAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust IndXX NextG ETF (NXTG) and Roundhill Generative AI & Technology ETF (CHAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	NXTG	CHAT	Difference
Sharpe ratio: Return per unit of total volatility	4.52	4.72	-0.21
Sortino ratio: Return per unit of downside risk	5.69	4.86	+0.84
Omega ratio: Gain probability vs. loss probability	1.77	1.65	+0.12
Calmar ratio: Return relative to maximum drawdown	8.10	8.90	-0.79
Martin ratio: Return relative to average drawdown	31.73	26.26	+5.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NXTG vs. CHAT - Sharpe Ratio Comparison

The current NXTG Sharpe Ratio is 4.52, which is comparable to the CHAT Sharpe Ratio of 4.72. The chart below compares the historical Sharpe Ratios of NXTG and CHAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NXTG	CHAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.52	4.72	-0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.95	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	1.98	-1.29

Drawdowns

NXTG vs. CHAT - Drawdown Comparison

The maximum NXTG drawdown since its inception was -33.61%, which is greater than CHAT's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for NXTG and CHAT.

Drawdown Indicators

	NXTG	CHAT	Difference
Max Drawdown Largest peak-to-trough decline	-33.61%	-31.34%	-2.27%
Max Drawdown (1Y) Largest decline over 1 year	-10.28%	-16.28%	+6.00%
Max Drawdown (3Y) Largest decline over 3 years	-17.75%	-31.34%	+13.59%
Max Drawdown (5Y) Largest decline over 5 years	-33.61%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.61%	—	—
Current Drawdown Current decline from peak	-0.82%	-0.66%	-0.16%
Average Drawdown Average peak-to-trough decline	-7.87%	-5.35%	-2.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	5.51%	-2.89%

Volatility

NXTG vs. CHAT - Volatility Comparison

The current volatility for First Trust IndXX NextG ETF (NXTG) is 8.27%, while Roundhill Generative AI & Technology ETF (CHAT) has a volatility of 11.70%. This indicates that NXTG experiences smaller price fluctuations and is considered to be less risky than CHAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NXTG	CHAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.27%	11.70%	-3.43%
Volatility (6M) Calculated over the trailing 6-month period	15.26%	24.62%	-9.36%
Volatility (1Y) Calculated over the trailing 1-year period	18.44%	30.74%	-12.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.93%	29.90%	-11.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.88%	29.90%	-11.02%

NXTG vs. CHAT - Expense Ratio Comparison

NXTG has a 0.70% expense ratio, which is lower than CHAT's 0.75% expense ratio.

Dividends

NXTG vs. CHAT - Dividend Comparison

NXTG's dividend yield for the trailing twelve months is around 1.11%, less than CHAT's 1.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CHAT Roundhill Generative AI & Technology ETF	1.64%	2.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NXTG First Trust IndXX NextG ETF	1.11%	1.56%	1.51%	2.15%	2.04%	1.97%	1.04%	0.77%	1.27%	1.65%	1.23%	1.11%

Frequently Asked Questions

Can I hold both NXTG and CHAT in my portfolio?

NXTG and CHAT have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NXTG or CHAT?

CHAT has higher volatility (11.70%) compared to NXTG (8.27%). In terms of maximum drawdown, NXTG dropped -33.61% vs CHAT's -31.34%.

Which ETF is better, NXTG or CHAT?

On 3-year performance, CHAT leads with 55.51% vs 35.56% for NXTG. On fees, NXTG is cheaper at 0.70% per year. On volatility, NXTG has been the lower-risk option at 8.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NXTG or CHAT?

Over the 3-year period, CHAT has performed better with a 55.51% return vs 35.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NXTG or CHAT?

NXTG is cheaper with a 0.70% expense ratio, compared with 0.75% for CHAT.

Which ETF pays a higher dividend yield, NXTG or CHAT?

CHAT has the higher dividend yield at 1.64%, compared with 1.11% for NXTG.

What is the main difference between NXTG and CHAT?

They also come from different issuers: First Trust and Roundhill. Their fees differ too: 0.70% for NXTG and 0.75% for CHAT.

Which has better risk-adjusted returns?

CHAT currently has the higher Sharpe Ratio (4.72 vs 4.52), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.